Online Credit Cards
From LoveToKnow Creditcards
As more consumers become familiar with the Internet, an online credit card, applying for credit, account management and security become important issues. This article will provide an overview of working with credit online.
Are There Online Credit Cards?
Not exactly. A close facsimile is PayPal Buyer Credit. For purchases made through PayPal, qualified applicants can access a line of approved credit with PayPal. If you’re a frequent online shopper who often uses a credit card or cycles funding through PayPal as a result of online income, this may be a viable online credit option.
PayPal also offers a traditional credit card through an agreement with MasterCard. Cardholders can use it online and in retail outlets, and it has an attractive rewards program. Compare the two to see which one fits your purposes. When you apply for either credit option online, PayPal guarantees approval in less than a minute.
Most businesses involved in e-commerce accept major credit cards like MasterCard, Visa and Discover, and probably will do so long into the future. However, if PayPal’s online merchant private credit account proves successful, it’s only a matter of time before others follow suit.
Applying Online
More credit card issuers now extend the convenience of instant approval. Go to any card Web site, such as Chase, Citibank, Discover or American Express and right away, you can apply for a number of different credit cards.
However, not everyone will qualify automatically or be able to access the credit line immediately. The online application cuts through some of the mailing and process time, certainly, but prospective cardholders must still meet a number of requirements, including:
- A solid credit history
- Consistent and accurate bill payment
- A good FICO score
An applicant needs to be prepared to fill out a lot of personal and financial information as well. Have this data readily available before starting the process.
Make sure to only apply online for credit cards through confirmed sites, not in response to e-mail solicitations. Often criminals will try to steal personal data through e-mail rerouted to appear as if it’s coming from a reputable site, and nearly 75 percent of all traffic on the Internet is spam. Also, verify the issuer’s site is secure by the golden padlock at the bottom of the page.
Keeping Credit Card Information Secure
Approximately 100,000 consumers each year fall pray to identity theft. While database breaches do happen occasionally, major corporations invest considerable time and money to protect your personal data, especially during online transactions. Here are a few tips to help you take extra precautions:
- Even when using your personal computer, log out completely from any online financial accounts and close the browser before surfing the Internet. This is especially important when sharing a computer with a roommate, utilizing WiFi or using public computing facilities, such as the library or university common room.
- Scan your computer regularly for spyware and viruses.
- Use a firewall, an application that monitors or prevents certain traffic between the Internet and your computer. This program is often standard with most Windows products or purchase other security software packages such as the popular Norton or McAfee suites.
- Get Safe Online provides other suggestions for PC, personal account and business online protection. Additionally, through a partnership with credit reporter Equifax, PayPal offers its U.S. customers free e-mail alerts. Equifax monitors a subscriber’s account and issues an alert if there is a suspicion of fraudulent activity.
- Offline, make sure to retain credit card receipts and review all statements monthly to further safeguard your information.
Online Banking and Account Management Services
You’ve probably seen the commercials wherein a woman completes her bill paying in the time it takes to draw a nice, hot bath. A few clicks here and there, and she’s taken care of all the bills for the month.
Certainly, online banking and account management services are a handy alternative to the busy lifestyle. Many credit card companies even offer incentives to completely convert to online credit card bill payment and account management.
Banks are already in the business of electronic fund transfer: it just took other companies such as utilities providers, mortgage institutions, credit issuers and even your fitness center a little while to come around. Here’s how it can work for you:
- Contact all your service providers to confirm they accept online bill payment and the requirements by which they do so.
- Arrange to have an online bill payment account established with your bank.
- Enter all payee-specific information, such as address and account number, into your online bank site.
- Click and pay!
There’s also an option of automatic withdrawal, in which you establish a payment withdrawal date with creditors and they deduct the monthly amount. This requires even less action on your part, but more diligence to keep your bank account fully funded.
Conclusion
As the Internet continues to evolve, so will the opportunities that eventually integrate themselves into our daily functions. With research and preparedness, doing financial business online can be a safe and convenient time management tool.
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This page has been accessed 782 times. This page was last modified 15:21, 23 October 2007.
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